>> MoT seeks VND6.8T in G-bonds for stagnant projects

>> Transportation infrastructure in desperate need of capital

The Ministry of Transport’s proposal of VND6.8 trillion (USD3.3 billion) in G-bonds for stagnant transportation projects has been turned down.

The MoT\'s G-bond proposal for stagnant transportation projects has been turned down (Illustration photo)

Cao Viet Sinh, Deputy Minister of Planning and Investment, said the Ministry of Planning and Investment (MPI) will not send the Ministry of Transport (MoT)’s proposal to the Government, and also asked them to rearrange capital sources for all their projects.

Under Resolution 11, issued in February this year, the Government has instructed to cut back spending on public projects in order to curb inflation and stabalise the economy. This has led to thousands of projects being put on hold. Instead, the Government has prioritised capital for security and national defense.

“The Government has been determined to slash capital for large number of other public projects. There is no reason for MoT to ask for more funds," Sinh noted.

The Vietnamese Government has asked all ministries, agencies and local governments to cut back on public investments by June 30. However the MoT has not been in strict accordance with the new guidelines.

The MoT\'s proposal is aimed to accelerate certain sluggish projects, most of which are in the provinces of Cao Bang, Phu Tho, Vinh Phuc, Ninh Binh, Thanh Hoa, Nghe An and Ca Mau. They include the expanded National Highway 1A, the Ho Chi Minh Highway, the Hanoi-Lao Cai Expressway and the Quan Lo-Phung Hiep National Highway.

According to the MPI, so far this year, around 1,196 projects that have begun construction have been delayed or pushed back.

At the end of this April, local ministries and state-owned corporations had cut down on investment capital by VND80.5 trillion (USD3.9 billion). The figure accounts for 9% of the country\'s total development investment for the year.